XRP has found itself caught within a consolidation phase throughout the past few days as it trades just above $0.30.
The cryptocurrency has been unable to surmount the heavy resistance it faces between $0.31 and $0.32, and it appears to be once again forming a strong correlation to Bitcoin and the aggregated cryptocurrency market.
That being said, it may be unable to post any strong rally until the rest of the market further extends its ongoing uptrend.
One analyst is now noting that he expects XRP to see some notable near-term downside before it can surge any higher.
He believes this decline could lead it as low as $0.212 – marking a nearly full retrace of its recent gains.
However, he still believes that its uptrend may remain intact despite this drop and that it may even be necessary in order for it to continue climbing higher in the near-term.
XRP Forms Bullish Technical Pattern as Consolidation Phase Extends
At the time of writing, XRP is trading up over 2% at its current price of $0.31. This is around the price at which it has been trading throughout the past few days.
Earlier this week, bulls sent the crypto surging to highs of $0.34, but this movement was not backed by enough buying pressure to hold it above the resistance it faced at $0.32.
The cryptocurrency has been consolidating below this level ever since, and it may continue trading sideways until the entire crypto market garners greater direction.
Both Bitcoin and Ethereum are currently consolidating beneath their crucial resistance levels. As such, where XRP moves next will likely depend on how they eventually respond to their near-term resistance.
One analyst noted in a recent tweet that the embattled token has been able to form a clear bull flag over the past several days and weeks. The resolution of this pattern could send it surging higher.
Image Courtesy of MoonOverlord. Chart via TradingView.
Analyst: Token May Dip to $0.21 Before Extending Momentum
He notes that this could lead it as low as $0.21 in the days ahead.
“XRP: Buy the dip zones: $0.212 and $0.245. Next resistance zone if this massive one breaks: $0.40. I doubt we’ll continue rallying, but I will be very satisfied to buy the dip.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Where it trends next may be partially dependent on the aggregated market, but it is also possible that its heavy resistance at $0.32 will spark a sharp decline.
Featured image from Unsplash. Charts from TradingView.